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ByteDance Eyes Over USD 330 Billion Valuation as Revenue Surpasses Meta

  • tech360.tv
  • 1 day ago
  • 2 min read

ByteDance, owner of the short-video app TikTok, plans a new employee share buyback programme that would value the Chinese technology giant at more than USD 330 billion, driven by continued revenue growth. This higher valuation buyback comes as the company consolidates its position as the world's largest social media firm by revenue, a status it initially achieved in the first quarter.


Glass skyscraper with "ByteDance" logo in blue on facade. Reflective windows under a clear blue sky create a modern, sleek look.
Credit: ByteDance


The company will offer current employees USD 200.41 per share in the upcoming buyback, a 5.5% increase from the USD 189.90 offered approximately six months ago. That earlier offer valued ByteDance at roughly USD 315 billion.


The latest buyback is anticipated to launch in the autumn. This move solidifies ByteDance's standing, with its second-quarter revenue rising 25% year-on-year.


ByteDance's first-quarter revenue had already surpassed Meta's USD 42.3 billion, establishing it as the top social media company by sales. Its second-quarter revenue further increased to about USD 48 billion, primarily from the Chinese market.


Both ByteDance and Meta maintained sales growth above 20% in the second quarter, buoyed by strong advertising demand. ByteDance's biannual buybacks allow employees to convert some holdings into cash.


These programmes also reflect a balance sheet strengthened by expanding domestic and international businesses. ByteDance uses its own balance sheet for these buybacks, signalling financial flexibility and healthy margins.


The company is recognised as a leader in artificial intelligence, having invested billions in Nvidia chips, AI infrastructure, and model development. Despite outpacing Meta in revenue this year, ByteDance's valuation remains less than a fifth of Meta's approximate USD 1.9 trillion market capitalisation.


Analysts largely attribute this gap to political and regulatory challenges in the U.S. ByteDance faces intense pressure in Washington over national security concerns regarding its Chinese ownership.


Congress passed a law last year requiring ByteDance to divest TikTok's U.S. assets by Jan. 19, 2025, or face a nationwide ban. President Donald Trump later extended this deadline to Sept. 17.


TikTok For Business logo on black background with red and teal circles. Bold white text centered, creating a modern, professional vibe.
Credit: TIKTOK

TikTok's U.S. business has been loss-making, according to sources. If the sale proceeds, it is expected to be owned by a joint venture involving an American investor consortium and ByteDance, with the latter maintaining a minority stake.


The frontrunner consortium includes ByteDance's current shareholders Susquehanna International Group, General Atlantic, and KKR, along with Andreessen Horowitz. Blackstone recently withdrew from the consortium.

  • ByteDance's valuation is projected to exceed USD 330 billion through a new employee share buyback.

  • The company's second-quarter revenue reached approximately USD 48 billion, an increase of 25% year-on-year.

  • ByteDance has surpassed Meta as the world's largest social media company by revenue.


Source: REUTERS

 
 
 

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